American-made goods also got more expensive under Trump tariffs, new research finds
A Federal Reserve Bank of New York study found that US tariffs raised prices on consumer goods, including products made in America. The findings suggest prices for many goods would have fallen by early 2026 without the tariffs, adding evidence about the policy’s effect on household costs.
Researchers estimated tariffs added about 2.9 percentage points to prices across the goods studied. Around two-thirds of the increase came from imports and roughly one-third from US-made products; the full effect can take up to a year to reach consumers. The White House says foreign exporters will ultimately bear the costs and argues the policy will benefit US workers, while the study expects prices to remain higher than they otherwise would have been.
- US tariffs raised prices on goods made domestically and abroad.
- Researchers estimated a 2.9 percentage-point price increase.
- The White House says exporters will ultimately bear the costs.
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Tariffs are taxes on imported goods, usually paid by the companies bringing them into a country. President Donald Trump’s administration has used them to raise the cost of some imports, saying this can support American workers and put pressure on foreign exporters.
The costs can affect American-made goods too, because US producers may rely on imported parts or face less competition from abroad. The New York Federal Reserve study examined price changes across a range of goods, tracing how tariff costs could pass through businesses to shoppers over time.
The issue matters because tariffs can shape both household bills and the conditions facing workers and businesses. The debate centres partly on who ultimately bears the cost: foreign exporters, US companies, consumers, or some combination.
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The case for
Supporters argue that tariffs can protect domestic industries from foreign competition, encourage companies to produce in the United States and strengthen workers’ bargaining power over time. They maintain that foreign exporters may absorb some of the cost and that any short-term price rises could be outweighed by more resilient supply chains and gains for US workers.
The case against
Critics argue that tariffs raise costs for households and businesses that use imported goods or materials, and that domestic producers may also increase prices when foreign competition is reduced. The study’s estimate that prices rose on US-made goods as well as imports supports their concern that consumers bear much of the cost, while the promised benefits to workers remain uncertain.